The Asian indices did not find single direction on Wednesday, although the two largest markets on the continent – in Tokyo and Shanghai, climbed new peaks perennial. Wall Street ended with new records on Tuesday, boosted by positive sentiment in the region. Dow Jones Industrial Average rose to a new high after data showed that the November car sales reported the best result since 2003. The growth of the Chinese services sector remained stable last month, according to recent government and private data due to strong economic activity in the fourth quarter. The non-productive PMI index rose to 53.9 points in November from 53.8 points a month earlier, staying again at the 50 points separating expansion from contraction.
Similar sector PMI index produced by HSBC and published a few hours earlier, showed a growth of up to 53 points in November from 52.9 points a month earlier. The data came just weeks after China’s central bank cut interest rates surprisingly for the first time in more than two years. The institution denied the move aims to support growth, although several key indicators of activity reported delay of the second largest economy in the world.
The Chinese benchmark Shanghai Composite closed at a new 3-year high for a second day after fractional session. On Tuesday, the index rose by 3% amid rumors that the Chinese central bank may take cutting reserve requirements for banks. The financial companies largely erased achieved in recent sessions profits. New China Life Insurance lost 6%, while Everbright Bank fell by 5%.
Trade in Hong Kong navigated between gains and declines to end eventually retreat to 0.7% after the rise by over 1% on Tuesday. The Japanese Nikkei index finished a new seven-year for the fourth consecutive session after the yen again dropped to a seven-year low against the USA. The manufacturer of airbags Takata surged From 2.6% after news of the formation of an independent commission to investigate the issues of road safety.
In Australia, trade completed a one-week high, as investors shrugged off news of slowing economic growth in the third quarter. However, the AUD fell to a new four-year low against the greenback after data economy. The mining companies reported positive results. Fortescue Metals added over 5%, while Atlas Iron growth reached 3%. Shares of Ten Network fell by 6% after the company announced that it has received several offers for takeover.
Shares in South Korea reported a modest extension after the 10-day bed earlier in the week. Hyundai Motor added 0.6% despite the 4% decline in annual sales in the US in November.